Redfin (RDFN) came out with a quarterly loss of $0.23 per share versus the Zacks Consensus Estimate of a loss of $0.27. This compares to loss of $0.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 14.81%. A quarter ago, it was expected that this real estate broker would post a loss of $0.58 per share when it actually produced a loss of $0.57, delivering a surprise of 1.72%. Over the last four quarters, the company has surpa ...

GET FOX BUSINESS ON THE GO BY CLICKING HERE "We do expect there to be some relief, but it might not be enough." "Until America builds more housing over the next 5 or 10 years, we might be in a low sales volume market. Maybe the election will make a difference, just because people can get back to the basic activities of commerce. But I think that housing is just going to be at low volume for a little while now," Kelman said. Redfin CEO Glenn Kelman revealed what he believes to be the "real issue" that is par ...

Core Viewpoint - Momentum investing focuses on "buying high and selling higher," contrasting with traditional strategies of "buying low and selling high" [1] Group 1: Stock Performance - Redfin (RDFN) has experienced a price increase of 28.7% over the past four weeks, indicating strong investor interest [2] - Over the past 12 weeks, RDFN's stock has gained 40.1%, demonstrating its ability to deliver positive returns over a longer timeframe [2] - RDFN has a beta of 2.66, suggesting it moves 166% higher than the market in either direction, indicating fast-paced momentum [3] Group 2: Momentum Score and Earnings Estimates - RDFN has a Momentum Score of B, indicating it is a favorable time to invest in the stock to capitalize on its momentum [3] - The stock has earned a Zacks Rank 2 (Buy) due to an upward trend in earnings estimate revisions, which typically attracts more investors [4] - The momentum-effect is particularly strong among Zacks Rank 1 and 2 stocks, further supporting RDFN's potential for price appreciation [4] Group 3: Valuation Metrics - RDFN is currently trading at a Price-to-Sales ratio of 0.93, suggesting it is attractively priced as investors pay only 93 cents for each dollar of sales [7] - The stock's reasonable valuation, combined with its fast-paced momentum, positions it well for potential growth [7] Group 4: Investment Strategy - The 'Fast-Paced Momentum at a Bargain' screen helps identify fast-moving stocks that are still attractively priced, including RDFN [6][8] - A balanced approach may involve investing in both momentum stocks and bargain stocks to mitigate risks associated with overvaluation [5]

Core Viewpoint - The real estate market is currently facing significant challenges due to rising interest rates, which have led to a slowdown in home sales and forced companies like Redfin to adapt their business strategies to remain profitable [1][7][14]. Company Overview - Redfin has shifted its focus from its iBuying program, which previously generated half of its revenue, to other services such as brokering and mortgage lending, which have higher gross margins [2][15]. - The company reported a gross profit increase of 22% in Q1, driven by cost-cutting measures, although it still faced a $27.6 million loss in adjusted EBITDA [4][10]. Financial Performance - In Q1, Redfin generated $225.5 million in revenue, reflecting a modest 5% increase year-over-year, which is notable given the overall decline in existing home sales [10]. - The company has a cash balance of $107 million and $165 million in loans held for sale, indicating a need for profitability to avoid potential cash flow issues [11][19]. Market Conditions - The U.S. Federal Reserve's aggressive interest rate hikes have significantly impacted the real estate market, with the federal funds rate rising from 0%-0.25% to 5.25%-5.5% in 18 months [7]. - Analysts predict a high likelihood of interest rate cuts by the Fed in late 2024, which could revitalize the housing market and benefit companies like Redfin [6][14]. Investment Potential - Redfin's stock has surged 41% this month, yet it still trades 91% below its all-time high, presenting a potential opportunity for investors if the market rebounds [18]. - The company's current price-to-sales (P/S) ratio is less than 1, indicating that it is undervalued compared to its revenue generation potential [18].

Company Overview - Redfin (RDFN) shares increased by 7.7% to close at $7.57, with trading volume significantly higher than usual, reflecting strong investor interest [1] - The stock has gained 9% over the past four weeks, indicating a positive trend [1] Earnings Expectations - Redfin is expected to report a quarterly loss of $0.25 per share, unchanged from the same quarter last year [2] - Revenue is projected to be $291.59 million, representing a 5.8% increase from the previous year [2] - The consensus EPS estimate for Redfin has remained stable over the last 30 days, suggesting that stock price movements may not continue without changes in earnings estimates [3] Industry Context - Redfin operates within the Zacks Real Estate - Operations industry, which includes other companies like CBRE Group (CBRE) [4] - CBRE's stock rose by 1.6% to $94.65, with a 4.6% return over the past month, indicating a generally positive sentiment in the industry [4] Market Influences - Increased investor optimism for Redfin is linked to a recent decline in mortgage rates, which is expected to boost housing demand in the United States [5] - Research indicates a strong correlation between earnings estimate revisions and near-term stock price movements, highlighting the importance of monitoring these trends [6] Zacks Rank - Redfin currently holds a Zacks Rank of 2 (Buy), suggesting favorable market conditions for the stock [7] - In contrast, CBRE has seen a 3.3% increase in its consensus EPS estimate over the past month, although this reflects a 12.2% decrease compared to the previous year [7]

Redfin (RDFN) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. As such, the Zacks rating upgrade for Redfin is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. For Redfin, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in t ...

Some of the heat is coming out of home prices, even though they're still higher than they were a year ago. For the first time since the start of the Covid-19 pandemic, when home sales ground to a halt, the typical home sold for slightly less than its asking price — 0.3% lower — during the four weeks ended June 23, according to real estate brokerage Redfin. A year ago at that time the typical home was selling at list price. Two years ago it was selling at about 2% above list price. Mortgage rates remain stub ...

Don't be put off by this stock's dismal performance lately -- now could be the best time to buy it with interest rate cuts on the horizon. The housing market has been a big casualty of that policy shift. Rising interest rates can reduce the borrowing capacity of the average homebuyer, which often leads to fewer sales. In fact, U.S. existing home sales came in at an annualized rate of 4.1 million units in May, which is 38% below the 2021 peak of 6.6 million units, when interest rates were sitting at record l ...

Company Insights - Redfin is expected to report a quarterly loss of $0.25 per share, unchanged from the same quarter last year, with revenues projected at $291.59 million, reflecting a 5.8% increase year-over-year [1] - The consensus EPS estimate for Redfin has remained stable over the last 30 days, indicating that stock price movements may not continue without earnings estimate revisions [3] - Redfin shares increased by 5.3% in the last trading session, closing at $6.57, with trading volume significantly higher than usual, despite a 21% loss over the past four weeks [5] Industry Insights - Cushman & Wakefield's consensus EPS estimate has decreased by 6.1% over the past month to $0.18, representing an 18.2% decline from the previous year [4] - Cushman & Wakefield currently holds a Zacks Rank of 3 (Hold), similar to Redfin [4] - The Zacks Real Estate - Operations industry includes both Redfin and Cushman & Wakefield, with the latter's stock rising by 3.6% to $10.63, despite a 5.7% decline over the past month [7]

Group 1 - Redfin (RDFN) has shown a technical bullish trend after surpassing resistance at the 20-day moving average, indicating a potential upward movement in stock price [2] - Over the past four weeks, RDFN shares have increased by 11.8%, and the stock currently holds a Zacks Rank 3 (Hold), suggesting further potential for gains [3] - Positive earnings estimate revisions support the bullish outlook for RDFN, with 9 estimates raised in the past two months and no reductions, leading to an increase in the consensus estimate for the current fiscal year [3]